Bipartite Producer-Consumer Networks and the Size Distribution of Firms

A bipartite producer-consumer network is constructed to describe the industrial structure. The edges from consumer to producer represent the choices of the consumer for the final products and the degree of producer can represent its market share. So the size distribution of firms can be characterized by producer's degree distribution. The probability for a producer receiving a new consumption is determined by its competency described by initial attractiveness and the self-reinforcing mechanism in the competition described by preferential attachment. The cases with constant total consumption and with growing market are studied. The following results are obtained: 1, Without market growth and a uniform initial attractiveness $a$, the final distribution of firm sizes is Gamma distribution for $a>1$ and is exponential for $a=1$. If $a<1$, the distribution is power in small size and exponential in upper tail; 2, For a growing market, the size distribution of firms obeys the power law. The exponent is affected by the market growth and the initial attractiveness of the firms.Comment: 13 pages, 3 figure

Constructing Consumer Sentiment Index for U.S. Using Google Searches

We construct a consumer sentiment index for the U.S. using the popularity trends of selected Google searches. The final index consists of four components and is highly correlated with the Index of Consumer Sentiment from the University of Michigan and the Consumer Confidence Index from the Conference Board. Among the three sentiment indices, the Google search-based index (SBI) leads in time and predicts other indices. In terms of forecasting consumer spending, the SBI outperforms both the ICS and the CCI and provides independent information. For robustness, we use multiple measures of consumer spending and a range of statistical specifications. The finding is robust.consumer sentiment; consumer confidence; leading economic indicators

Interfaces for the ordinary user: Can we hide too much?

This is the author's accepted manuscript. The final published article is available from the link below. Copyright @ The Authors 2012.Increasing the visibility and access to underlying file structure on consumer devices can vastly improve the user experience

The impact of productive efficiency and quality of a regulated local public utility on final goods prices and consumers welfare

In this paper, we reconstruct the process by which the decisions of a regulated local public utility, in terms of productive efficiency and quality of the service provided, impact on prices of final consumption goods, supplied in a oligopolistic market operating in the same geographic area. We obtain some formula for these effects which can be quantified by estimating firms’ conditional input demand function of the public service and firms’ inverse demand function for this public good, non-rival, component. Finally, we draw the effects of productive efficiency and quality on consumer welfare and cost-of-living, via changes on tariffs, external effects and final goods prices.regulation, x-efficiency, oligopoly, consumer welfare

"The monetary policy framework of the ECB"

In this short presentation I cannot discuss the concrete definition of the ECB’s final target which is an increase of the harmonised index of consumer prices in the euro area of "below 2 percent". Thus, I will focus on the monetary policy framework that the ECB has developed in order to achieve its target

Insufficient Incentives for Investment in Electricity Generation

In theory, competitive electricity markets can provide incentives for efficient investment in generating capacity. We show that if consumers and investors are risk averse, investment is efficient only if investors in generating capacity can sign long-term contracts with consumers. Otherwise the uncovered price risk increases financing costs, reduces equilibrium investment levels, distorts technology choice towards less capital-intensive generation and reduces consumer utility. We observe insufficient levels of long-term contracts in existing markets, possibly because retail companies are not credible counter-parties if their final customer can switch easily. With consumer franchise, retailers can sign long-term contracts, but this solution comes at the expense of the idea of retail competition. Alternative capacity mechanisms to stimulate investment are discussed

Why Do Consumer Prices React less than Import Prices to Exchange Rates?

It is well known that the extent of pass-through of exchange rate changes to consumer prices is much lower than to import prices. One explanation is local distribution costs. Here we consider an alternative, complementary, explanation based on the optimal pricing strategies of firms. We consider a model where foreign exporting firms sell intermediate goods to domestic firms. Domestic firms assemble the imported intermediate goods and sell final goods to consumers. When domestic firms face significant competition from other domestic final goods producing sectors (e.g., the non-traded goods sector) we show that they prefer to price in domestic currency, while exporting firms tend to price in the exporter's currency. In that case the pass-through to import prices is complete, while the pass-through to consumer prices is zero.

Micropayments: the final frontier for electronic consumer payments

Small payments of less than $5 have resisted the wave of electronification that has swept consumer payments in recent years. However, a number of innovations — both new technologies and new ways of doing business — have done much to make such electronic “micropayments” less expensive and more convenient. Now, having proven themselves in several online markets, micropayments are poised to make inroads at the physical point of sale. This paper looks at some of the success stories (and failures), both in the U.S. and abroad, to identify possible conditions for success and to gauge the outlook for the future. It finds that industry structure, the coordination of standards, and customer preferences and experiences have all influenced the development of these products. While different markets around the world have supported different types of solutions, the successful products have delivered clear utility to the consumer, along with compelling economics for the different parties in the value chain. With critical mass in sight, the future looks promising.Electronic funds transfers

The Impact Of Socio-Demographic Factors And Political Perceptions On Consumer Attitudes Towards Genetically Modified Foods: An Econometric Investigation

This survey-based paper investigates the impact of socio-demographic factors, along with political perceptions, as expressed by attitudes towards globalization, on consumer attitudes towards GM foods, in Greece. Different aspects of consumer attitudes regarding GM foods are examined, such as general preference, banning, labeling, intention to purchase them at a sufficiently low price, the nutritional category of food product and the proximity of the genetic modification to the final product. Econometric analysis using Logit and Probit models was conducted. Estimates clearly show that in general, attitudes towards GM foods are not affected by socio-demographic characteristics. However, political perceptions are a significant influential factor.Globalization, political, genetically modified food, econometric, Consumer/Household Economics, Food Consumption/Nutrition/Food Safety, D12, M31, R22,

Why Do Consumer Prices React less than Import Prices to Exchange Rates?

It is well known that the extent of pass-through of exchange rate changes to consumer prices is much lower than to import prices. One explanation is local distribution costs. Here we consider an alternative, complementary, explanation based on the optimal pricing strategies of firms. We consider a model where foreign exporting firms sell intermediate goods to domestic firms. Domestic firms assemble the imported intermediate goods and sell final goods to consumers. When domestic firms face significant competition from other domestic final goods producing sectors (e.g., the non-traded goods sector) we show that they prefer to price in domestic currency, while exporting firms tend to price in the exporter's currency. In that case the pass-through to import prices is complete, while the pass-through to consumer prices is zero.